To Shareholders and Investors

Business Reportfor the85th Term

From April 1, 2017 to March 31, 2018

Securities Identification Code: 6455

T o p Me ssag e

Greeting

Since our company was founded in 1907, for over the years wehave shared the path with the history of Japan’s firefighting
technology development as a top manufacturer of firefighting vehicles. We would like to express our deepest
appreciation for the warm support and patronage ofshareholders and all those concerned.
Morita Group has the slogan "Protecting Human Life andMother Earth" and deploys the four businesses of Fire FightingVehicles, Fire Protection Equipments & Systems, Recycling
Machines and Environmental Conservation Vehicles whileremaining committed to its missions of protecting humanlives and property and irreplaceable nature of the earth and,for that, keeping on trying to make greater innovation andcreating new value. Aiming to make great strides and improveenterprise value, we are also working under our basic policy of"exploiting new markets", "increasing profitability of existing
business", "enhancing the R&D", and "carrying out investment
for sustainable growth". In addition, we are convinced thatdevelopment of a sustainable society will be facilitated bypromoting corporate activities to take good care of theenvironment and to realize a better society to live in under acorporate governance structure which enables transparent,
fair, quick and bold decision-making. At Morita Group, we are
all united and striving to earn the trust of a broad spectrum ofsociety.
We sincerely thank you for your continued support in thefuture.

Masahiro Nakajima, Chairman and CEO
Kazumi Ogata, President

Overview of 85th TermNet sales

Operating income

Ordinary income

Net income attributable toowners of parent company¥85,502 million¥8,483 million¥9,030 million¥5,741 million

Year on year

Up 0.5%

Year on year

Down 12.1%

During this consolidated fiscal year under review, Japan’s
economy was on a moderate recovery trend as evidenced by
improvements in corporate earnings and employment
environment thanks to various economic measures
implemented by the government; however, the futureremains uncertain because of slowing emerging economies
and the instability of the world economy due to the rising
trend of protectionism.
In such circumstances, Morita group has been working on
various measures aimed at increasing enterprise value for thesecond year of our Mid-term Plan, "Morita Advance Plan 1000."
As a result of the healthy growth of the Fire Protection
Equipments & Systems Business, net sales during thisYear on year

Down 10.8%

Year on year

Down 4.9%

consolidated fiscal year under review increased by ¥438
million from the previous year to a record high, ¥85,502
million (+0.5%), and achieved its highest sales record. In themeantime, operating income decreased by ¥1,165 million to¥8,483 million (-12.1%) due to the decline in domestic
demand for the Fire Fighting Vehicles Business and a cost
increase caused by the relocation of a factory for theEnvironmental Conservation Vehicles Business, ordinary
income, by ¥1,098 million to ¥9,030 million (-10.8%), and net
income attributable to owners of parent company, by ¥298
million to ¥5,741 million (-4.9%) from the previous year,respectively.

Morita News
Fire Fighting
Vehicles Business

Morita developed and showcased two new models of fire fighting vehicle
at "Tokyo International Fire and Safety Exhibition 2018".

Under the concept of "Go Beyond", Morita Group exhibited two newly developed fire fighting vehicle models at the "Tokyo International
Fire and Safety 2018 (Fire-Safety Tokyo)" held at Tokyo Big Sight from Thursday, May 31 to Sunday, June 3, 2018.
1. Miracle Light, fire fighting vehicle (Type CD-I) less than Gross Vehicle Weight (GVW) 3.5t, compatible with ordinary motor vehicle license
Previously, ordinary driver’s license holders used to be allowed to drive fire fighting vehicle weighing less than 5t. But under thecurrent Road Traffic Law (revised in March 2017), the limitation has been changed to less than GVW 3.5t.
Our newly developed "Miracle Light" is first* and exclusive* Japanese domestic fire fighting vehicle (Type CD-I) that can be operated
with Japanese ordinary driver's license applicable to new regulation of driver's license.
Despite its compact and smart design, Miracle Light has sufficient performance and good usability. Miracle Light is applicable tofirefighting competitions, making it an excellent choice for members of volunteer fire corps nationwide in Japan.
Newregulation

3.5 t

ORDINARY
LICENSE

7.5 t

11 t

SEMI MEDIUM-SIZED MEDIUM-SIZEDLICENSELICENSE(GROSS VEHICLE WEIGHT)

LARGE-SIZEDLICENSE["Semi Medium-sized" Motor Vehicle License Classification, in Effect as of March 12, 2017.]
N.B. Ordinary motor vehicle license (newly acquired) allows drivers to operate only vehicles less than GVW 3.5t.

Miracle Light, fire fighting vehicle (Type CD-I)
less than GVW 3.5t, compatible with ordinary motor vehicle license

2. MVF21 (MORITA VARIOUS FIGHTER 21), multi-purpose fire fighting vehicle"MVF21" is a multi-purpose fire fighting vehicle for fire extinguishing, rescue, and equipment storing. The vehicle fitted with aCompressed Air Foam System (CAFS) in order to extinguish fires using less volume of water, equipped with a 21m aerial platform, a900L water tank, and sufficient storage space.
Also, MVF21 is equipped with a basket capable of carrying a maximum load of 400kg, which is the first development in Japan*. Thebasket was co-developed by our consolidated subsidiary BRONTO SKYLIFT OY AB of Finland and Morita Corporation in a process thatutilized the best of each company’s technology. MVF21 is a multipurpose fire fighting vehicle designed for a wide range of fire fighting
and rescue operations.

MVF21,
multi-purpose fire fighting vehicle( * As of May 1, 2018, according to our own research)

O

Financial Highlights (Consolidated)

Unit: Millions of yen

85,063
71,9432015.3

Ordinary income

Net income attributable toowners of parent company

Unit: Millions of yen

Unit: Millions of yen

85,502
10,12968,5742016.32017.32018.3

8,375

8,123

2015.32016.32017.3

9,030

4,709

2018.32015.3

6,040

4,537

2016.32017.3Return on equity

Shareholders' equity ratio

Interest-bearing liabilities

Unit: %

Unit: %

Unit: Millions of yen

11.3
10.2

13,682

55.3
51.1

9.8

52.7

5,741

2018.3

13,735

53.8

11,5779.1
6,502

2015.32016.32017.32018.32015.32016.32017.32018.32015.32016.32017.32018.3

Performance by Segment
Fire Protection Equipments & Systems BusinessFire Fighting Vehicles BusinessNet sales

Net salesYear on year

Year on year

21,261 million yen Up 16.8%

49,781 million yen Down 4.2%

Operating income Year on year

Operating income Year on year

2,101 million yenAs a result of steady sales
growth of "SPRINEX", a packaged
automatic fire extinguishingsystem, both sales and income
increased.

Environmental Conservation Vehicles BusinessNet sales

5,527 million yen

Up 71.0%

Year on year

10,331 million yen Down 1.6%

Sales and income both decreased
in reaction to the increase indomestic demand in the previousyear.

24.9%
12.1%

Down 23.0%

Net Sales
Composition

4.8%

58.2%
Recycling Machines BusinessNet sales

4,127 million yen

Year on year
Down 5.8%

Operating income Year on year

Operating income Year on year

Down 50.3%Up 290.4%

611 million yen

Sluggish demand for sanitary
vehicles resulted in a decrease inboth sales and income.

191 million yen

As a result of focused efforts inpar ts sales and maintenanceamid a decline in product sales,
sales decreased and income
increased.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATION

Inauguration ofBusiness

April 23, 1907

Establishment

July 23, 1932

Capital

4,746 million yen

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities ofgroup companies, and being entrusted withindirect management operations

MORITA CORPORATION

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan
Development, manufacturing and sales of laddertrucks, fire trucks, other types of fire trucks andspecialty vehicles

Shiba256 Square Building 8F, 2-5-6 Shiba,
Minato-ku, Tokyo, 105-0014, Japan

MORITA MIYATACORPORATION

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, firefighting equipment and otherfire protection equipment

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan

MORITA ENVIRONMENTAL Design and construction of waste recycling
TECH CORPORATION
facilities and other waste disposal facilities.

Executives

Development, manufacturing and sales of large
hydraulic equipment

Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

Director and Executive Vice President

Yukihiro Maehata

Director

Shinichi Kanaoka

Director

Mitsuo Isoda

Director

Takao Kawanishi

Full-Time Corporate Auditor

Eiji Asada

Full-Time Corporate Auditor

Atsushi Miyazaki

Auditor

Masaru Ota

AuditorShozo NishimuraManaging Corporate Executive Officer

Shinya Murai

Corporate Executive Officer

Naohisa Sakamoto

Corporate Executive Officer

Mitsuru Ito

28 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA ECONOSCORPORATION

Development, manufacturing and sales ofenvironmental conservation vehicles such as
sanitation vehicles and garbage trucks

32 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA TECHNOSCORPORATION

Aftercare service and maintenance of fire trucks
and of rescue equipment. Development,manufacturing and sales of electronic appliedmachinery and information processing machinery

BRONTO SKYLIFT OY AB

Teerivuorenkatu 28, FI-33300 Tampere,Finland
Development, manufacturing and sales ofcombined platform ladders and aerial platforms

Distribution of Shares by Type of Shareholder
As of March 31, 2018
Treasury shares 3.6%

Information about the StockBusiness Year

Other Japanese
corporations
8.4%

April 1 to March 31

Annual General Meeting ofJune
Shareholders
Reference Dates

Annual General Meeting of Shareholders - March 31
Year-end Dividend - March 31
Interim Dividend - September 30
Other dates published in advance as necessary

Method ofPublic Notice

Posted as electronic public notice on company website
http://www.morita119.com/kohkoku/index.html

Administrator of
the Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Place of Clerical Office forthe above

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
4-5-33 Kitahama, Chuo-ku, Osaka-shi, Osaka

Securities companies 0.4%

Non-Japanese
corporations
16.5%

Total

46,918,542 shares

Individuals/others

Financial institutions
41.9%

29.3%

Top 10 Shareholders

As of March 31, 2018

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265

Morita Trading-Partner Shareholding Association

2,208

Mizuho Bank, Ltd.

2,087

(Postal Address)

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063(Telephone Inquiries)+81-3-3323-8222(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html

Sumitomo Mitsui Trust Bank, Limited

2,082

Stock Listing

Tokyo Stock Exchange

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,048

Number of shares per unit

100 shares

Sumitomo Mitsui Banking Corporation

2,007

Japan Trustee Services Bank, Ltd. (Trust account)

1,766

AIR WATER INC.

1,730

The Master Trust Bank of Japan, Ltd. (Trust account)

1,140

NORTHERN TRUST CO. (AVFC) RE HCR00885[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.) before theshare certificates were computerized, an account (a special account) has been opened with
Sumitomo Mitsui Trust Bank, Limited, the administrator of the shareholders list. For details
regarding the special account, notification of address change, and so on, please contact thetelephone inquiry number listed above.
[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm where youraccount was established for notification of address change and so on. For shareholders who
do not have an account at a securities firm, please contact the telephone inquiry number
listed above.

Notes:

Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045
Tel. +81-6-6208-1907

Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003
Tel. +81-3-5777-5777
http://www.morita119.com

1. Number of shares held is rounded down to the nearest thousand shares.
2. The Company holds treasury shares numbering 1,681 thousand shares.
3. ‌The Bank of Tokyo-Mitsubishi UFJ, Ltd. changed its name to MUFG Bank, Ltd.
on April 1 2018.